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Friday, January 23, 2015

Michigan Company President Sentenced for Fraud and Tax Evasion

A Plymouth, Michigan, resident was sentenced today in the U.S. District Court for the Eastern District of Michigan to serve 42 months in prison to be followed by one year of supervised release for committing wire fraud and tax evasion, the Justice Department and the Internal Revenue Service (IRS) announced. 

According to court documents, Michael Stover was the president of Omni Facility Services (Omni), a janitorial company located in Southfield, Michigan.  As part of his responsibilities as president, Stover approved and paid subcontractors of Omni.  Stover incorporated a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed.  Stover then approved payment of those invoices on Omni’s behalf.  The payments to Envirovac actually went to Stover.  Over the course of this scheme, Stover embezzled approximately $2.178 million from Omni.  On his federal income tax return for 2007, Stover failed to report the income that he had embezzled from Omni. 

The case was investigated by special agents of IRS-Criminal Investigation.  Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.        

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.                                  

Press Release Number: 
Updated May 18, 2016